The headline Non-Farm Payrolls report was strong, but there are some bad things to consider:
First, this is old news. April? That was ages ago.
The unemployment rate ticked up to 9% from 8.8%. That's because the household survey -- which had been doing much better than the establishment survey -- showed net job loss.
The closely-watched U-6 -- so-called real unemployment -- jumped to 15.9% from 15.7%.
The average work week stayed flat at 34.3 hours.
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Tribal Mongols Huns and the like peoples that made their living from herd animals and by controlling territories for their herds, get a bad rap in history with the belief that they built their empire solely on murder and plunder.
ReplyDeleteBut Plunder does not last long there has to be new production of wealth.
Actually they were only clearing out and killing small farmer populations so as to expand their lands and herds to make their living in the only way they knew how .
A way of life that to them seemed natural and even heroic. And the small farmers appeared to them as stupid ,isolated de-tribalised peoples restricted in their imagination and culture by individualist farming at the service of feudal aristocrats.
In America the opposite process occurred with individualist clearing of tribals to seize the land to create a small farming culture. A legal constitution was created that reflected that mode of production
Americans no longer live in that small farming culture, as the small farmers and even slaves living in plantation /labor concentration camps were cleared from the land with the development of more efficient large scale capitalist farming ,serving modern industrial production.
Americans born into the new industrialized economy made their living in that economy the best way they could as individuals after the development of monopolies and imperialist empire trade .
After imperialist W W2 with its own economy intact and dominating world trade and finance America was finally able to overcome the last great capitalist depression .
High wages were economically possible in the fifties and sixties for a privileged labor aristocracy , but the overall profitability of American industry was dependent on still having a cheap Black labor sector.
Civil rights struggles and rebellion for equal wages by the Black national minority led to concessions. Johnson’s “Great Society” and the like destroyed the basis for the profits of American industry ,the profits of racial discrimination.
Even a devaluation of the dollar by America unable to meet the cost of wars and
debts ,by shifting from the Gold standard of money under Nixon , could not restore the profitability of American exports.
An unofficial ,but real backing for the Fiat Paper dollar was established by OPEC pricing its oil in dollars creating a worldwide demand for American paper, in return ,the US military provided a mafia like protection to The Oil Elites like the Saudi Royal family .
This formed the basis for the dollar hegemony system in world trade and finance, with the $ as world standard of value and world reserve currency.
America found it could export $ paper in return for real world oil and other commodity wealth.
But in the competition with a rebuilt Europe and at that time the more efficient and cheap labor Japan, American Capital found it was more profitable to de-industrialize and export American industries ,except armaments for its military ,to the cheap labor Third World.
America found an even cheaper source China
American paper/capital was exported , building Chinese export of wealth industries.
The deal between the New Chinese Capitalists ( “Communists”)and American capital ,was that America would provide access for Chinese cheap labor commodities to the American markets and in return that the Chinese would support the US dollar hegemony system by re-exporting most of their dollar profits back to America ,by investing in US treasuries and US property bonds adding to demand for a “strong” $
This Ponzi debts economy was only possible as long as the dollar appeared strong and $ credit expanded from the savings of the rest of the world to finance US consumption on credit
Unproductive America began to live on plunder and foreign credit ,as a services economy with a retail sector ,Wall Mart etc . making its profits from imports .
That “Mongol” plunder economy and its $ died in a sea of mounting debt slavery in 2008.